New Bangalore Airport

Today's news item on the new Bangalore Airport confirms my feelings on this new " state of the art" airport in Bangalore that was opened a couple of months ago.

To me, it is a classic case of how NOT to plan and construct a Brand new airport- especially in a place like "The Silicon Valley of India".

Chief Minister B S Yeddyurappa has said yesterday, "International airport at Bangalore which has been newly constructed is not up to the mark. That is why I have formed the legislature committee -- they will go through and take the necessary decision. After the report, after the inspection we are going to take decision. According to all our legislators and experts and industrialists, they want to have one more airport. We want to retain that and are in touch with Central government. HAL airport we want to retain."

The agreement signed with teh develoeprs of the new airport clearly says that the old HAL airport shall be closed to make way for this new one. Add to it that the DGCA ruling that no two airports shall be located within a 150 km radius of each other.

So much so for consistency on civil aviation policy! I wonder what message this will send out to the proespective investors in other airports? I am sure GMR, Reliance etc must be a worried lot by now.. The last thing you, as investor, would want is to pump in billions of dollars based on certain traffic projections being relocated to the new facility, at the contract award stage, only to see it being snatched by Netas based on their whims and fancies, after the airport becomes functional.

Russian Sstock Market

Not so long ago, Western investors were so pumped up about the Russian Oil story... the Russsian Stock Index (RTSI) spurted faster than the Sputnik.

Fast forward to 2008 - the same index is falling faster than the price of Oil. It ahs lost morethan 40% till date. (Phots and charts courtessy Wall Street Journal).

As they say, what goes up has to come down - maybe not this fast, though!!

Top innovations for the future

http://battelle.org

The above website had lsited the following as possible top 10 innovations for the future, in 2005. I would like to track them progressviely in anotehr 15-20 years.

1. Human genome mapping and genetic-based personal identification and diagnostics will lead to preventive treatment of diseases and cures for specific cancers.
2. Super materials. Computer-based design and manufacturing of new materials at the molecular level will mean new, high-performance materials for use in transportation, computers, energy, and communications.
3. Compact, long-lasting and highly portable energy sources, including fuel cells and batteries will power electronic devices of the future, such as portable personal computers.
4. Digital high definition television. This important breakthrough for American manufacturers — and major source of revenue — will lead to better advanced computer modeling and imaging.
5. Electronic miniaturization for personal use. Interactive, wireless data centers in a pocket calculator-size will provide users with a fax machine, telephone, and computer capable of storing all the volumes in their local library.
6. Cost-effective "smart systems" will integrate power, sensors, and controls. They eventually will control the manufacturing process from beginning to end.
7. Anti-aging products that rely on genetic information to slow the aging process will include aging creams that really work.
8. Medical treatments will use highly accurate sensors to locate problems, and drug delivery systems will precisely target parts of the body — such as chemotherapy targeted specifically to cancer cells to reduce the side effects of nausea and hair loss.
9. Hybrid fuel vehicles. Smart vehicles, equipped to operate on a variety of fuels, will select the appropriate fuel based on driving conditions.
10. Edutainment. Educational games and computerized simulations will meet the sophisticated tastes of computer-literate student

Gulf of Mexico

I am amazed at the number of oil rigs in the Gulf of Mexico. This picture was taken from one of the Forex blogs, and is as of Aug 2008.

I salute the resilience of the Oil Industry , given that the Gulf is "infested" with hurricanes of varying intensity, virtually every summer. To keep the thirsty gas guzzler SUVs and Hummers is no mean task, huh!!

Meritocrasy in Democracy?

All of us have been led into believing that the US stands, by and large, for meritocracy.

There used to be a joke about Giani Zail Singh. Before he became the President of India , he visited the US to meet Raegan, and they could not converse, since Zail Singh knew only Punjabi and Raegan, only English. The story goes that Raegan vowed to teach English to the genial Sardar, but ended up learning Punjabi!


The recent events in the US Presidential nominations and the street fights that preceeded it, made me wonder if the US is learning too fast from India. Look at the facts below and make your own conclusions:

1. There was initially so much hoopla in the media on whether to get a Blakc or a Woman as the Democratic party candidate... merit took the back seat, and all the public spats reminded me of Jayalalitha vs Karunandhi spats in the TamilNadu politics ( woman vs untouchable)...
2. Finally Obama elbowed his way, and the national press went ga-ga over a "hisotric" nomination of a Black Presidential candidate ( first in some 250 years after the Americas were founded) , again , talk was much less about his capability ( or lack of it) than the colour of his epiderm and mesoderm.
3. Obama was more criticized for his rather yougnage, and lack of Congressional experience... again no talk of merit or what his capabilties were. And how did he respond? By picking a 72 year Oldie (Biden), whom people hardly knew... for his age, his "experience" and for his oratorial skills... dont even bother asking about his credentials or capability... for a minute I thought Theepori Arumugam or Kaaduvetti Guru would have perfectly fitted the bill ( great orators, lot of experience and aged....)... Merit? What merit?
4. Just when the Democrats thought they got the trump card, McCain perhaps glanced through recent Indian politics, saw the Pratibha Patil episode, and decided to bowl a Googly ( or Doosra, should I say?). Not to be left far behind, he wanted to erase the accusation of old age being against him, he stuck two mangoes with one stone, by announcing Palin ass his running mate. One she is 44 years young only, and two, she is a woman? And how did she start off her Acceptance speech? By roaring that "women in the US are not finished yet!!" Clearly she was targetting the women voters ( 50% plus)... whether this gimmic will help erase the legacy(???) Georgie and help the Republicans back into the White house remains to be seen, but again, merit has clearly been buried under 10 feet of snow in Alaska!!
5. An even funnier observation - the media misses no chance to mention " Obama is a devout Christian... goes to xyz church regularly" "McCain is a devout Baptist" "Hiilary is a devout Methodist" ... all thesse are clear gimmics to corner the votes of the beleiver voters. Compare this what is happening in India - the BJP tries to woo Hindus, all the non -BJP parties go head over heels to establish their "secualar" credentials , a move amied clearly at cornering the Muslim and other minority votes... or Ramadoss and Co. clear take the names of Vanniyars. etc etc... clear market segmentation in the name of religion and caste in India, is matched one to one in the US by both the politicians and the media... and all along we thought the US democracy was a lot mature, and believed in meritocracy!!!!

All this goes to prove a few things:

1. Politicians are the same everywhere.
2. Formal Western Education ( or lack of it) is no guarantee for rational thinking and voting... people will still vote becuasde " she is a woman" or "he is a devout Christian" or " he is a white" or " or "he is from the Afro American community" or " he is from the xyz caste" or " she is from the abc town" etc etc... merit is only secondary or even tertiary.
3. Getting votes on factors other than merit has been the norm throughout the world, not just an expception in India. The next time you read a western magazine referring to the "abominable casteist politics" in India, dont shy to ask " what about the other countries?"

What the Q2 08 US GDP Numbers mean

The increase in second quarter GDP was widely expected, but not to the extent of 3.3% .... mainly due to the SOCIALISTIC DOLES ( aka, Stimulus cheques or "tax rebates").
But go beyond just the effect of the Stimulus cheques, and you will see the fluff in the numbers.
1. Major portion of the increased GDP is attributed to increased Exports.... more specifically, the drop of the value of the Greenback... which has dipped from 1.48 to 1.60 over the 2nd qtr... about 7% or so. Today's report in MarketWatch.com corroborates this... the Tech sector is in for a rough ride in earnings, due to the unexpected reversal in the Dolar's fortunes upwards now.. http://www.marketwatch.com/news/story/stronger-dollar-may-take-wind/story.aspx?guid=%7BBF5D0F4E%2D7F4D%2D4853%2D8EC9%2D8AEAFD54BFA0%7D
2. Exports picked up due to drop in Dollar ... a reasonable estimation, but now with the pull back in $$ parity, that edge is now gone...
3. Going forward, the consensus among Economists is that the GDP iss expected to come down , but not crash... the effect of stilumus cheque will wane, plus the appreciation on $$$ value. Add to it, the exacerbating Euro Zone economies, which are falling off the cliff now. In fact the recent sstrength in the Dollar is partially due to increased exportss , but majorly due to drop in Euro Zone prospects. This will continue.
4. A major worry is posssible recession in Japan in this quarter... this will mean slowing down of the Asian Economies... already China is "cooling off" to about 9% growth, and is expected to come down further. India reported 7.9% yesterday, as against an earleir estimate of 8.5%... what is will mean, are two things... short term rally of the Dollar ( wont help the US economy in any way), and slowing exports... this double whammy will result in the GDP slowing down more significantly in Q3 and Q4.
As for recession in the US, the official figures dont suggest a recession alright, but most economists agree wholeheartedly that it already feelss like recession... consumer spending is down over the last 8 quarters, housing is collapsing like a pack of cards, credit is tightening... all these dont bode well.
5. The average American is so stuck with plastic money ( credit Card). There was another report in CNBC last week of a crisis looming in the Credit Card ssegments. Read the articles below... http://www.researchrecap.com/index.php/2008/03/27/warning-signs-seen-in-rising-credit-card-delinquencies/
http://www.domain-b.com/finance/banks/20080813_unsecured_credit.html
To me, the Americans have exhausted all forms of SECURED CREDIT ( Housing, Stocks and Bonds etc.) and are now turning to Credit Cards as a last resort... if this sustains, then one can safely expect to see lesser number of cars zipping on the highways!!

Cheers... Dilip

Shanghai Maglev

The Maglev train in Shanghai, connects the City ( though not the centre) to the Airport iss an engineering marvel.



























It ocvers a distance of about 50 km in roughly 7 minutes ! Built by the Germans, it has not been very popular due to the cost and the lead into the city.


I travelled in it in 2004 . The Chinese Govt is trying to extend this route now, to increase the acceptance.

http://en.wikipedia.org/wiki/Shanghai_Maglev_Train

http://www.smtdc.com/en/